- S&P500 rebounds sharply after seeing worst selloff since 1987 on Thursday.
- Resistances are seen at the 2700 and 3100 price levels.
S&P500 daily chart
The S&P500 Index is retracing back up sharply following one of the worst days in history on Thursday as the Coronavirus is spreading fear. As the market is pulling back up, the index could climb towards the 2900 and 3100 price levels in the coming sessions. However, as the S&P500 remains fragile the move up may end up being a dead-cat bounce if the 2400 support fails to hold prices.
Additional key levels
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Editors’ Picks
EUR/USD holds near 1.0550 after Eurozone inflation data
EUR/USD trades marginally higher on the day at around 1.0550 in the European session. The data from the Eurozone showed that the annual HICP inflation rose to 2.3% in November from 2% in October, as expected. Financial markets in the US will close early on Friday.
GBP/USD loses traction, retreats below 1.2700
After climbing to its highest level in over two weeks at 1.2750, GBP/USD reverses direction and declines to the 1.2700 area on Friday. In the absence of fundamental drivers, investors refrain from taking large positions. Nevertheless, the pair looks to snap an eight-week losing streak.
Gold gains on haven demand due to rise in geopolitical risk
Gold stages a bigger rebound on Friday and enters the $2,660s during the early US session. A rise in safe-haven flows due to a breakdown in the Israel – Hezbollah ceasefire agreement is one of the catalysts, as is Russian President Vladimir Putin’s warning Russia could launch nuclear-capable missiles at Ukraine.
Bitcoin attempts for the $100K mark
Bitcoin (BTC) price extends its recovery and nears the $100K mark on Friday after facing a healthy correction this week. Ethereum (ETH) and Ripple (XRP) closed above their key resistance levels, indicating a rally in the upcoming days.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
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